'End of profits' warning to Asian telcos: Tellabs Malaysia

AvantiKumar |
Dec. 9, 2011

Telco services provider Tellabs Communications' study shows that Asia Pacific telcos could face the end of profits by 2014.

"User devices, and applications driving a bandwidth explosion from 2Mbps [megabits per second] to 300 Mbps," he said. "Telcos are either over or under provisioning. Over provisioning is causing a capex [capital expenditure] drain to the provider, while running costs and bandwidth are going up: the revenues are flat and this will eventually lead to a loss of profits."

"We need to create a culture where customers need to pay for quality (speed) of connection as well as quantity of data downloaded or uploaded," said Wong. "This means a change from 'dumb' pipes to 'smart pipes' and journey toward SmartServices, where technical and commercial flexibilities offer personalised user services, with differentiated pricing."

"A smart network is a cost leadership strategy, which focuses on cost-efficiency with minimal network, IT and commercial costs, while Tellabs' SmartServices is a differentiation strategy that focuses on technical and commercial flexibility, which includes personalised user services, differentiated pricing and charging," he said.

"This would allow a better quality of user experience, manage and track devices more efficiently. Carriers must now bring intelligence to their networks. Doing so will make the difference between carriers running a smart mobile Internet, or an unsustainable dumb-pipe business," he said. "The company's new Tellabs SmartCore 9200 series router, the world's first terabit per slot content aware router, gives deep packet inspection [DPI] to effect fingerprint matching to recognise applications being used."